Be part of building a new republic

Irish banking system starving viable business of credit and playing no role with SMEs – Morgan

27 April, 2010

Speaking this evening in the Dáil on a motion during PMB regarding Strategic Investment Bank, Sinn Féin Spokesperson for Finance Arthur Morgan called on the government to establish a state bank from a fully nationalised AIB. The bank should be a state bank containing two parts; one for strategic investment and one for residential lending. Morgan also highlighted that the primary function of the SIB would be to invest in and loan to viable business and extend credit to viable SMEs.

He said:

“For the last number of years it has become apparent that the Irish banking system is not only playing no role in stimulating business in this state, but that it has starved viable business of credit to the point where they have lost the capacity to function. Banks are playing NO role with SMEs and lending has become constipated with corruption among senior executives while indigenous business crumbles. Banks have lost the capacity to function and evaluate credit worthiness. Enterprise Ireland personnel are going into banks to train in evaluation!

“We need a state bank and Sinn Féin has been saying this for over 20 years. A state bank would create a standard of decency and stability in this country.

“In Sinn Féin’s job creation document ‘Getting Ireland Back to Work’ published last year we refernced the need for a state bank that would have investment in business as one of it’s main priorities. We also pointed out the need for an increase on venture capitalism.

“This party has always argued for a state bank, we don’t need to establish a state bank from scratch we need to fully nationalise AIB which the state has a majority state- holding in now. It is madness to be pumping billions and billions into the banking system and not see any real return to business and ordinary customers.”